Andorra Allocates €6M for Rent Aid Capping Payments at 30% of Income

Andorra's government will allocate €6 million to a new rental assistance programme, capping eligible households' rent payments at 30% of their income, Prime Minister Xavier Espot has announced.

Speaking on Ràdio Nacional d'Andorra's Avui serà un bon dia programme, Espot said the initiative targets working- and middle-class residents facing high market rents. The measure, which he framed as housing support rather than general welfare, will supplement payments for groups such as separated couples and young people starting out independently. Approval is expected in the coming weeks.

Espot attributed the funding to Andorra's economic growth and contributions from passive residents, which have bolstered public finances. He highlighted existing policies—like the progressive unfreezing of contract extensions and limits on rent increases—that have stabilised 70% of tenants. From next year, he added, rents will be capped at a fixed percentage even upon tenant changes, preventing general liberalisation.

The prime minister defended his Democrats for Andorra (DA) administration against opposition claims of favouring property speculators. He insisted such figures appear around all parties, including critics like Andorra Endavant, Concòrdia and the Social Democratic Party (PS). "I do not feel addressed by those who say this about my policies," Espot said. "There are speculators in the circles of all parties, even those accusing us. Perhaps they should clean their own house before asking us to do so."

While conceding that public housing development should have advanced sooner with stronger impact, Espot emphasised steady progress: "We are taking one step further each time."